CHINA S inflation rate is expected to climb above 4 percent next year, with inflationary pressures peaking in the first few months of 2011, Xinhua reported Saturday, citing a researcher with the country s State Information Center.
China will face great inflationary pressures next year. The first three months will see the fastest growth in prices, Zhu Baoliang was quoted as saying at a forum in Guangzhou.
Consumer price inflation hit a 23-month high of 3.6 percent in the year to September and a Reuters poll forecasts inflation in October, due for release Thursday this week, will hit 4 percent.
Concern about rising inflation prompted China to raise interest rates last month for the first time in nearly three years. The government, which has a target ceiling of 3 percent for 2010, has cautioned that inflationary pressures are growing due to a rise in hot money inflows and escalating food-driven inflation.
Economists, however, are divided as to whether the next rate rise will come before the end of this year.
Domestic media last week reported the need for China to increase interest rates to curb capital inflows driven by U.S. monetary easing, with the net benefit seen as cooling domestic asset prices. (SD-Agencies)
